Saks Global Files for Chapter 11 Bankruptcy Amid Heavy Debt

Luxury retailer Saks Global, owner of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas. The filing comes just over a year after the company's $2.65 billion acquisition of Neiman Marcus, which significantly increased its debt load.

To support operations during the restructuring, Saks Global has secured approximately $1.75 billion in financing from its creditors. This includes an immediate $1 billion debtor-in-possession loan led by investment firms Pentwater Capital Management and Bracebridge Capital, with an additional $500 million available upon the company's emergence from bankruptcy.

The bankruptcy filing reveals that several luxury brands are among Saks Global's largest unsecured creditors. Chanel is owed approximately $136 million, while Kering, the parent company of Gucci, is owed about $60 million. LVMH, the world's largest luxury conglomerate, is listed as an unsecured creditor with a claim of $26 million.

In the wake of the bankruptcy filing, Geoffroy van Raemdonck, former CEO of Neiman Marcus, has been appointed as the new CEO of Saks Global. He succeeds Richard Baker, who briefly held the position following the departure of Marc Metrick earlier this month.

Saks Global operates approximately 33 Saks Fifth Avenue stores, 36 Neiman Marcus locations, two Bergdorf Goodman stores, and about 70 Saks Off 5th discount outlets. The company has stated that all stores will remain open during the restructuring process, and it intends to honor customer programs, pay suppliers, and continue employee payroll and benefits.